Commodities register another gloomy week amid higher US dollar; to focus on US economic numbers, central bank comments

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Commodities register another gloomy week amid higher US dollar; to focus on US economic numbers, central bank comments



Overall, risk sentiment is quite weak currently and commodities and equities, which were performing quite well for the last few months, have come under selling pressure.





May 14, 2022 / 12:27 PM IST





It was another disappointing week ended May 13 as commodities were bashed by a general flight to safety and the US dollar continued its unchallenged rise.

Market risk sentiment continued to remain pressurised by prospect of higher interest rate, concerns about higher inflation, China's struggle to get virus spread under control and continuing Russia-Ukraine fighting.

Just a week after the US Federal Reserve rattled the global market by raising interest rate by 0.5 percent and projecting more rate hikes, US inflation data and comments from Fed officials kept market fear high that the central bank may tighten aggressively to get inflation under control.

US inflation data released this week showed some easing in consumer and producer prices, however the readings were still above market expectations and could not ease market nerves about price pressure. US consumer prices rose 8.3 percent on the year in April, a slight improvement from 8.5 percent growth a month ago, but higher than market expectations of 8.1 percent growth.

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